Energy finance company PowerDime has unveiled the development of a tokenized renewable energy trading platform built on the Chintai layer 1 blockchain network. The platform targets institutional investors seeking yield and renewable energy projects seeking financing options.
The platform features tokenized virtual power purchase contracts (fixed-price financial contracts for electricity) and provides regular cash flows to investors. Josh Gordon, Managing Director of Chintai, told Cointelegraph:
“By leveraging the power of blockchain, we are transforming renewable energy into more than a promise; it is now an investment opportunity. By tokenizing traditionally illiquid contracts, we can drive a sustainable future for institutional investors while also providing real We’re giving you the tools to achieve financial returns.”
Gordon also said the platform currently covers wind and solar energy and plans to expand its renewable energy offerings in the future. The platform is available in the US, UK, and select Asia Pacific regions, with plans to expand to other jurisdictions over time.
Global Power Purchase Agreement Market. Source: Chintai
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Carbon emissions market and regenerative finance
PowerDime’s latest development is a form of regenerative finance, an investment arm focused on financing projects that promote social, environmental and other public benefits.
Regenerative finance is made possible through blockchain technology, decentralized autonomous organizations, and tokenization of real-world assets, allowing investors to access global markets for reforestation projects, renewable energy, carbon dioxide emissions reduction, and more.
On December 5, 2023, researchers from the United Arab Emirates (UAE) unveiled a carbon trading platform at the United Nations Climate Change Conference (COP28).
The blockchain network tracked the carbon emissions of registered public or private entities and allowed users to trade and monitor tokens representing carbon emissions reductions across the supply chain.
In May 2024, KlimaDAO Japan announced the launch of a carbon credit market. The decentralized autonomous organization is focused on combating climate change and could expand the carbon credit market to other jurisdictions.
More recently, in September 2024, financial services company Northern Trust launched an institutional carbon credit ecosystem. The suite of tools included in the ecosystem managed the issuance, transfer, and maintenance of carbon credit tokens throughout the lifecycle of digital assets.
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